HPQ » Topics » Purchased Intangible Assets

This excerpt taken from the HPQ 10-Q filed Jun 6, 2008.

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions are composed of:

 
  April 30, 2008
  October 31, 2007
 
  Gross
  Accumulated Amortization
  Net
  Gross
  Accumulated Amortization
  Net
 
  In millions

Customer contracts, customer lists and distribution agreements   $ 3,434   $ (1,888 ) $ 1,546   $ 3,239   $ (1,679 ) $ 1,560
Developed and core technology and patents     2,977     (1,897 )   1,080     2,768     (1,694 )   1,074
Product trademarks     129     (97 )   32     115     (92 )   23
   
 
 
 
 
 
Total amortizable purchased intangible assets     6,540     (3,882 )   2,658     6,122     (3,465 )   2,657
Compaq trade name     1,422         1,422     1,422         1,422
   
 
 
 
 
 
Total purchased intangible assets   $ 7,962   $ (3,882 ) $ 4,080   $ 7,544   $ (3,465 ) $ 4,079
   
 
 
 
 
 

15


HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements (Continued)

(Unaudited)

Note 6: Goodwill and Purchased Intangible Assets (Continued)

        Estimated future amortization expense related to finite lived purchased intangible assets at April 30, 2008 is as follows:

Fiscal year:

  In millions
2008 (remaining 6 months)   $ 421
2009     765
2010     654
2011     399
2012     226
Thereafter     193
   
  Total   $ 2,658
   
This excerpt taken from the HPQ 10-Q filed Mar 10, 2008.

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions are composed of:

 
  January 31, 2008
  October 31, 2007
 
  Gross
  Accumulated
Amortization

  Net
  Gross
  Accumulated
Amortization

  Net
 
  In millions

Customer contracts, customer lists and distribution agreements   $ 3,269   $ (1,783 ) $ 1,486   $ 3,239   $ (1,679 ) $ 1,560
Developed and core technology and patents     2,827     (1,793 )   1,034     2,768     (1,694 )   1,074
Product trademarks     116     (95 )   21     115     (92 )   23
   
 
 
 
 
 
Total amortizable purchased intangible assets     6,212     (3,671 )   2,541     6,122     (3,465 )   2,657
Compaq trade name     1,422         1,422     1,422         1,422
   
 
 
 
 
 
Total purchased intangible assets   $ 7,634   $ (3,671 ) $ 3,963   $ 7,544   $ (3,465 ) $ 4,079
   
 
 
 
 
 

        Estimated future amortization expense related to finite lived purchased intangible assets at January 31, 2008 is as follows:

Fiscal year:

  In millions
2008 (remaining 9 months)   $ 592
2009     710
2010     603
2011     350
2012     179
Thereafter     107
   
Total   $ 2,541
   
This excerpt taken from the HPQ 10-K filed Dec 18, 2007.

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions for each of the following fiscal years ended October 31 are composed of:

 
  2007
  2006
 
  Gross
  Accumulated
Amortization

  Net
  Gross
  Accumulated
Amortization

  Net
 
  In millions

Customer contracts, customer lists and distribution agreements   $ 3,239   $ (1,679 ) $ 1,560   $ 2,586   $ (1,293 ) $ 1,293
Developed and core technology and patents     2,768     (1,694 )   1,074     1,923     (1,307 )   616
Product trademarks     115     (92 )   23     103     (82 )   21
   
 
 
 
 
 
Total amortizable purchased intangible assets     6,122     (3,465 )   2,657     4,612     (2,682 )   1,930
Compaq trade name     1,422         1,422     1,422         1,422
   
 
 
 
 
 
Total purchased intangible assets   $ 7,544   $ (3,465 ) $ 4,079   $ 6,034   $ (2,682 ) $ 3,352
   
 
 
 
 
 

        Amortization expense related to finite-lived purchased intangible assets was approximately $783 million in fiscal 2007, $604 million in fiscal 2006 and $622 million in fiscal 2005.

        Based on the results of its annual impairment tests, HP determined that no impairment of the Compaq trade name existed as of August 1, 2007 or August 1, 2006. However, future impairment tests could result in a charge to earnings. HP will continue to evaluate the purchased intangible asset with an indefinite life on an annual basis as of the beginning of its fourth fiscal quarter and whenever events and changes in circumstances indicate that there may be a potential impairment.

        The finite-lived purchased intangible assets consist of customer contracts, customer lists and distribution agreements, which have weighted-average useful lives of approximately eight years, and developed and core technology, patents and product trademarks, which have weighted-average useful lives of approximately six years.

102


        Estimated future amortization expense related to finite-lived purchased intangible assets at October 31, 2007 was as follows:

Fiscal year:

  In millions
2008   $ 779
2009     692
2010     585
2011     337
2012     166
Thereafter     98
   
Total   $ 2,657
   


Note 8: Restructuring Charges

This excerpt taken from the HPQ 10-Q filed Sep 7, 2007.

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions are composed of:

 
  July 31, 2007
  October 31, 2006
 
  Gross
  Accumulated
Amortization

  Net
  Gross
  Accumulated
Amortization

  Net
 
  In millions

Customer contracts, customer lists and distribution agreements   $ 3,133   $ (1,584 ) $ 1,549   $ 2,586   $ (1,293 ) $ 1,293
Developed and core technology and patents     2,558     (1,604 )   954     1,923     (1,307 )   616
Product trademarks     110     (90 )   20     103     (82 )   21
   
 
 
 
 
 
Total amortizable purchased intangible assets     5,801     (3,278 )   2,523     4,612     (2,682 )   1,930
Compaq trade name     1,422         1,422     1,422         1,422
   
 
 
 
 
 
Total purchased intangible assets   $ 7,223   $ (3,278 ) $ 3,945   $ 6,034   $ (2,682 ) $ 3,352
   
 
 
 
 
 

        Estimated future amortization expense related to finite lived purchased intangible assets at July 31, 2007 is as follows:

Fiscal year:

  In millions
2007 (remaining 3 months)   $ 183
2008     713
2009     630
2010     522
2011     275
Thereafter     200
   
  Total   $ 2,523
   
This excerpt taken from the HPQ 10-Q filed Jun 8, 2007.

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions are composed of:

 
  April 30, 2007
  October 31, 2006
 
  Gross
  Accumulated
Amortization

  Net
  Gross
  Accumulated
Amortization

  Net
 
  In millions

Customer contracts, customer lists and distribution agreements   $ 3,134   $ (1,492 ) $ 1,642   $ 2,586   $ (1,293 ) $ 1,293
Developed and core technology and patents     2,557     (1,514 )   1,043     1,923     (1,307 )   616
Product trademarks     109     (89 )   20     103     (82 )   21
   
 
 
 
 
 
Total amortizable purchased intangible assets     5,800     (3,095 )   2,705     4,612     (2,682 )   1,930
Compaq trade name     1,422         1,422     1,422         1,422
   
 
 
 
 
 
Total purchased intangible assets   $ 7,222   $ (3,095 ) $ 4,127   $ 6,034   $ (2,682 ) $ 3,352
   
 
 
 
 
 

        Estimated future amortization expense related to finite lived purchased intangible assets at April 30, 2007 is as follows:

Fiscal year:

 
  In millions
2007 (remaining 6 months)   $ 365
2008     712
2009     629
2010     522
2011     275
Thereafter     202
     
    Total   $ 2,705
     
This excerpt taken from the HPQ 10-K filed Dec 22, 2006.

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions for each of the following fiscal years ended October 31 are composed of:

 
  2006
  2005
 
  Gross
  Accumulated
Amortization

  Net
  Gross
  Accumulated
Amortization

  Net
 
  In millions

Customer contracts, customer lists and distribution agreements   $ 2,586   $ (1,293 ) $ 1,293   $ 2,401   $ (972 ) $ 1,429
Developed and core technology and patents     1,923     (1,307 )   616     1,750     (1,040 )   710
Product trademarks     103     (82 )   21     94     (66 )   28
   
 
 
 
 
 
Total amortizable purchased intangible assets     4,612     (2,682 )   1,930     4,245     (2,078 )   2,167
Compaq trade name     1,422         1,422     1,422         1,422
   
 
 
 
 
 
Total purchased intangible assets   $ 6,034   $ (2,682 ) $ 3,352   $ 5,667   $ (2,078 ) $ 3,589
   
 
 
 
 
 

        Amortization expense related to finite-lived purchased intangible assets was approximately $604 million in fiscal 2006, $622 million in fiscal 2005 and $603 million in fiscal 2004.

98



        Based on the results of its annual impairment tests, HP determined that no impairment of the Compaq trade name existed as of August 1, 2006 or August 1, 2005. However, future impairment tests could result in a charge to earnings. HP will continue to evaluate the purchased intangible asset with an indefinite life on an annual basis as of the beginning of its fourth fiscal quarter and whenever events and changes in circumstances indicate that there may be a potential impairment.

        The finite-lived purchased intangible assets consist of customer contracts, customer lists and distribution agreements, which have weighted average useful lives of approximately eight years, and developed and core technology, patents and product trademarks, which have weighted average useful lives of approximately six years.

        Estimated future amortization expense related to finite-lived purchased intangible assets at October 31, 2006 was as follows:

Fiscal year:

  In millions
2007   $ 545
2008     478
2009     396
2010     289
2011     168
Thereafter     54
   
Total   $ 1,930
   
This excerpt taken from the HPQ 10-Q filed Sep 11, 2006.

Purchased Intangible Assets

        HP's purchased intangible assets associated with completed acquisitions are composed of:

 
  July 31, 2006
  October 31, 2005
 
  Gross
  Accumulated
Amortization

  Net
  Gross
  Accumulated
Amortization

  Net
 
  In millions

Customer contracts, customer lists and distribution agreements   $ 2,581   $ (1,212 ) $ 1,369   $ 2,401   $ (972 ) $ 1,429
Developed and core technology and patents     1,922     (1,239 )   683     1,750     (1,040 )   710
Product trademarks     98     (78 )   20     94     (66 )   28
   
 
 
 
 
 
Total amortizable purchased intangible assets     4,601     (2,529 )   2,072     4,245     (2,078 )   2,167
Compaq trade name     1,422         1,422     1,422         1,422
   
 
 
 
 
 
Total purchased intangible assets   $ 6,023   $ (2,529 ) $ 3,494   $ 5,667   $ (2,078 ) $ 3,589
   
 
 
 
 
 

17


        Estimated future amortization expense related to finite-lived purchased intangible assets at July 31, 2006 is as follows:

Fiscal year:

  In millions
2006 (remaining 3 months)   $ 150
2007     543
2008     476
2009     394
2010     289
Thereafter     220
   
Total   $ 2,072
   
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